Insolvency code: Biggest creditors call the shots – The Indian Express

(Representational)

The Insolvency and Bankruptcy Code may have prescribed a minimum vote of 75 per cent in a creditors committee before any decisions are taken in the insolvency process, but the countrys courts are interpreting this quite differently. Two benches of the National Company Law Tribunal (NCLT) have interpreted the law to mean the biggest creditor calls the shots. While this might hurt the interests of the smaller creditors, the benches seem to be arguing that it will hasten the process of winding-up.

In June this year, Raj Oil Mills approached t…

Read the full article at: http://indianexpress.com/article/business/economy/insolvency-code-biggest-creditors-call-the-shots-4870264/